The Chronological Record in Which Transactions Are Initially Recorded in the Order

question 123

Multiple Choice

The chronological record in which transactions are initially recorded in the order in which they occur is called a(n)

• A)T-account.
• B)Chart of Accounts.
• C)Trial Balance.
• D)Journal.

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Definitions:

Absorption Costing

A method in accounting that integrates every manufacturing expense – direct materials, labor, and all overheads (variable and fixed) – into the product’s price.

Net Operating Income

A company's total profit from operational activities, excluding expenses related to interest and taxes.

Period Cost

Expenses that are not directly tied to production activities and are expensed in the period in which they occur.

Contribution Margin

The difference between the sales revenue of a product and its variable costs, used to cover fixed costs and contribute to profit.